New Jersey Bill Targets Sportsbook Bonus Offers

A new bill introduced on February 25 and currently moving through the New Jersey legislature has raised eyebrows in the gambling industry after lawmakers proposed banning sportsbooks from offering bonuses or promotions to players who sign up for responsible gambling tools.

Unanimous 5-0 Vote

Assembly Bill 4003, titled “Prohibits sports wagering licensee from offering incentive-based wagering to anyone utilizing responsible gaming mechanisms”, wants to stop operators from offering promotional credits, bonuses, or similar rewards to bettors who are enrolled in a variety of programs, including deposit limits, betting limits, cool-off periods, or state self-exclusion systems.

Democratic Assemblymen Dan Hutchinson, Cody Miller, and Michael Venezia introduced the proposal. If approved, sportsbooks could face fines of $500 for each violation.

The bill recently passed through the Assembly Tourism, Gaming, and the Arts Committee with unanimous support, advancing by a 5 to 0 vote. A matching proposal has also been introduced in the New Jersey Senate by Senator Paul Moriarty.

Supporters of the legislation argue that gambling companies should not use incentives to influence people who may already be taking steps to control their betting habits.

Going Too Far?

However, some experts within the responsible gambling sector believe the proposal may go too far.

Jessica Welman, deputy director of the Campaign for Fairer Gambling, said there is an important distinction between problem gambling protections and standard responsible gambling tools used by everyday bettors.

“There is a major difference between responsible gambling and problem gambling,” Welman explained. “Ensuring that sportsbooks don’t market to self-excluded persons or people in a cool-off period is a valiant cause.”

At the same time, she warned that the broad language of the bill could have unintended consequences.

“These are tools that ideally every bettor is taking advantage of, not just those who are experiencing a gambling problem,” she added.

Ongoing Protection Proposals 

The debate comes as New Jersey lawmakers keep taking more and more aggressive approaches toward sports betting regulation.

Hutchinson is also backing another bill that would require sportsbooks to notify customers when betting limits are applied to their accounts and explain why the restriction occurred.

Another proposal introduced alongside Cody Miller would ban microbetting across the state. Microbets allow gamblers to wager on small in-game events such as the outcome of a single pitch or play.

Meanwhile, Assemblyman Michael Venezia is sponsoring separate legislation that would impose a 10% surcharge on sportsbook revenue generated from World Cup betting.

The latest measures highlight growing political pressure around gambling regulation as states continue balancing industry growth with consumer protection concerns.